CHANDLER, AZ — Intel Corp. (Nasdaq: INTC) is bringing close to $20 billion worth of investment and thousands of jobs to the East Valley, and for its part, the city of Chandler is looking at throwing in $20 million to make sure the plants have enough water and another $10 million on road work.
This week the Chandler City Council will decide whether to authorize a development agreement between the city and Intel, and part of that would include the financing and construction of public infrastructure needed to serve Intel’s expansion of its manufacturing facility.
Under the terms of the agreement, Chandler would spend up to $12.1 million to acquire additional water rights so Intel would have enough potable water for its operations. In total, the city will be serving Intel an additional 3.1 million gallons per day of potable water.
The city will be paying to design, construct and finance public infrastructure improvements to make sure all that potable water is delivered to Intel. It also will be creating a system to get up to 11 million gallons per day of reclaimed water to the new site.
The city of Chandler will also be asking the Arizona Department of Revenue to help cover large portions of these water-related costs under the Public Infrastructure Master Agreement. Intel has agreed to reimburse Chandler if the Department of Revenue doesn’t pay the amounts Chandler expects.